Israel-Iran tensions fuel fears in global markets
Gold surges 1.1%, Brent crude oil rises 5.4% after Israel launched sweeping airstrikes on Iran
ISTANBUL
The latest escalation of geopolitical tensions in the Middle East caused by Israel’s airstrikes on Iran overshadowed the optimism in the global markets provided by US-China trade talks, while concerns of further escalation raised risk sentiment.
While a new US deal with China, its most important trade partner, and growing expectations of a compromise with other countries supported equity markets, investors focused on geopolitical risks after Israel's latest attack on Iran.
Following the attack, sharp movements were seen in Brent oil. With supply concerns, the price of Brent oil rose to $76.3 a barrel, its highest level since February. The barrel price of Brent oil is currently trading at $73.44, up 5.4% as of 0620GMT.
After the ounce price of gold rose to $3,445 on Friday, it stabilized at around $3,425, up 1.1%.
Index futures contracts in Europe started the new day negatively amid rising war concerns. The FTSE 100 futures index in the UK lost 0.3%, the CAC 40 futures index in France and the DAX 40 futures in Germany lost around 1.6%, and the FTSE MIB 30 futures in Italy lost 0.7%.
In Asia, the Nikkei 225 index in Japan fell 1.2%, the Kospi index in South Korea 1.3%, the Shanghai Composite index in China 0.7% and the Hang Seng index in Hong Kong 0.8%.
The Israeli strikes began around 3 am local time (2330GMT) and targeted both military and nuclear facilities, as well as residential areas, according to Iranian media reports.
The Israeli army said a total of 200 Israeli planes struck Iran in its early Friday attack.
Brig. Gen. Effie Defrin, an army spokesman, said that 200 Israeli planes had dropped 330 munitions during the strikes.
In response, Iran launched over 100 drones towards Israel in recent hours, and interception efforts are ongoing, he added.
He also confirmed the assassination of several senior Iranian officials in the strikes, including Chief of Staff Mohammad Bagheri, Iranian Revolutionary Guard Corps chief Hossein Salami, and Gholam Ali Rashid, a senior commander in the guard.
Both countries have been preparing for potential military confrontation, with Iran reportedly developing counterstrike plans involving ballistic missiles targeting Israeli territory.
